Rungis wholesale market signs contract to assist Russia

Rungis, the wholesale market that supplies the Paris region in fresh products has signed a contract for it’s first expansion outside of France. Rungis will lend it’s expertise and brand to it’s future equivalent in Moscow.

The contract has been signed by Stéphane Layani, President of the company Semmaris and Andreï Kostine, Director General of the Russian public bank, VTB. The Russian Vice Prime Minister, Arkadi Dvorkovitch and Minister of Agriculture, Alexande Tkatchev were present.

The “technical assistance” contract represents $28 million over 15 years for Semmaris. The company will not invest any funds, but will lend their expertise (feasibility, construction and exploitation) and will allow them to use their brand 'Rungis Market International' for the Russian project.

This is the first contract abroad of it’s kind for Rungis, which is the word’s largest wholesaler. They hope to sign a similar type of agreement soon with Dubai.

Total surface area of the project in Russia will cover 300 hectares, more than the surface of Rungis. Construction will take place South of Moscow in Domodedovo and is planned between 2016-2018 with an €800 million investment.

This contract has been signed despite the Russian imposed embargo on French food products (a reaction to Western sanctions linked to the Ukranian crisis). The embargo has effected producers in Rungis as the market makes 10% of it’s turnover at export.

Source: lexpansion.lexpress.fr